| Wed 15 Feb 2012, 9:32 | | ANG - AngloGold Ashanti Limited - Anglogold Ashanti profit increases to record |
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ANG
ANANO
ANG - AngloGold Ashanti Limited - Anglogold Ashanti profit increases to record
$1.3BN; doubles dividend
AngloGold Ashanti Limited
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number:ZAE000043485
JSE Share Code: ANG
("AngloGold Ashanti/Company")
ANGLOGOLD ASHANTI PROFIT INCREASES TO RECORD $1.3BN; DOUBLES DIVIDEND
- Record full-year adjusted headline earnings* of $1.3bn, 336 US cents a
share
- Record annual operating cash flow of $2.66bn
- Net Debt more than halved in 2011 to $610m, despite increased capital
expenditure
- Dividend of 200 SA cents a share for fourth quarter; full-year dividend 380
SA cents
- Strong growth in reserves and resources; reserves now 75.6Moz, resources
230.9Moz
- Mponeng, Moab Khotsong life extension projects approved
(ANGLOGOLD ASHANTI) - AngloGold Ashanti posted record full-year adjusted
headline earnings* of $1.3bn and boosted its dividend to further improve cash
returns to shareholders.
AngloGold Ashanti`s Board declared a fourth-quarter dividend of 200 South
African cents a share, more than double the third-quarter payout of 90 South
African cents. The full-year dividend of 380 South African cents compares with
the 2010 full-year dividend of 145 South African cents.
"With record earnings of $1.3bn and stronger cash flow than we`ve ever seen,
we`ve laid an exceptionally strong foundation on which to grow the business,"
Chief Executive Officer Mark Cutifani said. "Our focus is on pushing our
projects through the pipeline and ensuring continued strong returns for
shareholders."
AngloGold Ashanti eliminated the industry`s last remaining major hedge book
in late 2010, improving cash flows and profits by increasing exposure to the
rising gold price. Bullion remains well underpinned by strong demand from
emerging markets like China and India, Central Banks diversifying reserves and
investors seeking a haven from global economic turmoil. Amid rising prices, the
company is implementing a new operating model to improve productivity across 20
mines and a portfolio of growth projects.
Adjusted headline earnings in the 12 months to 31 December 2011 rose 65% to
$1.3bn, or 336 US cents a share, compared with $787m, or 212 US cents the
previous year. The Continental Africa region delivered strong performances from
Geita in Tanzania which produced 494,000oz at $536/oz and from Obuasi, which
managed a 4% increase in production and a cash contribution to the group. An
operating taskforce began implementing a strategy to improve Obuasi`s operating
performance during 2011.
Full year production of 4.33Moz at a total cash cost of $728/oz was in line
with revised guidance issued by the company in November.
Phase 2 of the Moab Khotsong Zaaiplaats project, with a capital cost over
roughly five years of $395m (real) was approved by the board, as was the Below
120 CLR project at Mponeng, at a capital cost of $416m (real), also to be spent
over about five years. These projects extend the life of our two cornerstone
mines in South Africa.
Cash flow generated from AngloGold Ashanti`s operating activities during the
year rose by almost 60% to $2.66bn, another record. Net debt1 more than halved
to $610m, underscoring the improvement in AngloGold Ashanti`s cash generation,
even after funding capital expenditure of $1.53bn during the year.
Tragically, three employee fatalities were recorded at the Kopanang mine
during the quarter, as well as two contractors at Obuasi, in Ghana and another
at Gramalote, in Colombia. AngloGold Ashanti is implementing additional safety
protocols as well as the next phase of its Project ONE operating model to
further mitigate safety risks. Project ONE introduces, among other things,
increased discipline on planning and scheduling, which in turn improves
efficiency and safety in the workplace.
Fourth Quarter
Fourth quarter production of 1.114Moz at $762/oz was also in line with
guidance, despite the negative impact of a series of Section 54 safety stoppages
ordered by the state mine inspector in South Africa. These interruptions remain
a significant risk to forecasting production.
Adjusted headline earnings* for the three month period to 31 December 2011
was $295m, or 76 US cents a share, following a $105m non-cash rehabilitation
provision taken over the period. That compares with adjusted headline earnings
of $294m a year earlier and $457m the previous quarter, when the company
benefitted from a $70m tax credit.
2012 Outlook
ull year2 2012 production is estimated to be 4.3Moz-4.4Moz at a total cash
cost of $780/oz-$805/oz. Capital expenditure for 2012 is forecast at $1.1bn on
growth projects and $1.1bn-$1.2bn on projects to sustain the business, which
includes implementation of an enterprise resource planning system across the
group. Exploration and feasibility studies will cost about $380m.
For the first quarter3, typically affected by the slow restart of the South
African operations following the Christmas break, production is expected to be
around 1.03Moz at a total cash cost of $820/oz to $835/oz.
*Excludes cost of accelerated hedge buy-back 1Excludes mandatory convertible
bonds.
2 Assuming an exchange rate of R7.40/$ and an oil price of $110/barrel for
the year.
3 Assuming an exchange rate of R7.40/$ and an oil price of $110/barrel.
About AngloGold Ashanti
AngloGold Ashanti is a global gold mining company and the world`s third
largest gold producer. Headquartered in Johannesburg, South Africa, AngloGold
Ashanti has 20 operations on four continents and several exploration programmes
in both the established and new gold producing regions of the world. AngloGold
Ashanti produced 4.33Moz of gold in 2011, generating $6.6bn in gold income.
Capital expenditure in 2011 amounted to $1,53m. As at 31 December 2011,
AngloGold Ashanti`s Ore Reserve totalled 75.6Moz.
The primary listing of the company`s ordinary shares is on the JSE Limited
(JSE). Its ordinary shares are also listed on stock exchanges in London and
Ghana, as well as being quoted in New York in the form of American Depositary
Shares (ADSs), in Australia, in the form of CHESS Depositary Interests (CDIs)
and in Ghana, in the form of Ghanaian Depositary Shares (GhDSs).
ENDS
15 February 2012
JSE SPONSOR - UBS
Contacts
Tel: E-mail:
Alan Fine (Media) +27 11 637 6383 afine@AngloGoldAshanti.com
Mike Bedford (Investor) +27 11 637 6273 mbedford@anglogoldashanti.com
Stewart Bailey(Investor) +1 2128364303 sbailey@anglogoldashanti.com
Certain statements made in this communication, including, without limitation,
those concerning the economic outlook for the gold mining industry, expectations
regarding gold prices, production, cash costs and other operating results,
growth prospects and outlook of AngloGold Ashanti`s operations, individually or
in the aggregate, including the completion and commencement of commercial
operations of certain of AngloGold Ashanti`s exploration and production projects
and the completion of announced mergers and acquisitions transactions, AngloGold
Ashanti`s liquidity, capital resources and capital expenditure and the outcome
and consequences of any litigation or regulatory proceedings or environmental
issues, contain certain forward-looking statements regarding AngloGold Ashanti`s
operations, economic performance and financial condition. Although AngloGold
Ashanti believes that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such expectations will
prove to have been correct. Accordingly, results could differ materially from
those set out in the forward-looking statements as a result of, among other
factors, changes in economic and market conditions, success of business and
operating initiatives, changes in the regulatory environment and other
government actions including environmental approvals and actions, fluctuations
in gold prices and exchange rates, and business and operational risk management.
For a discussion of certain of these and other factors, refer to AngloGold
Ashanti`s annual report for the year ended 31 December 2010, which was
distributed to shareholders on 29 March 2011 and the company`s 2010 annual
report on Form 20-F, which was filed with the Securities and Exchange Commission
in the United States on May 31, 2011. These factors are not necessarily all of
the important factors that could cause AngloGold Ashanti`s actual results to
differ materially from those expressed in any forward-looking statements. Other
unknown or unpredictable factors could also have material adverse effects on
future results. AngloGold Ashanti undertakes no obligation to update publicly
or release any revisions to these forward-looking statements to reflect events
or circumstances after today`s date or to reflect the occurrence of
unanticipated events. All subsequent written or oral forward-looking statements
attributable to AngloGold Ashanti or any person acting on its behalf are
qualified by the cautionary statements herein.
This communication may contain certain "Non-GAAP" financial measures. AngloGold
Ashanti utilises certain Non-GAAP performance measures and ratios in managing
its business. Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the reported operating results or cash flow from
operations or any other measures of performance prepared in accordance with
IFRS. In addition, the presentation of these measures may not be comparable to
similarly titled measures other companies may use.
AngloGold Ashanti posts information that is important to investors on the main
page of its website at www.anglogoldashanti.com and under the "Investors" tab on
the main page. This information is updated regularly. Investors should visit
this website to obtain important information about AngloGold Ashanti.
Date: 15/02/2012 09:32:01 Produced by the JSE SENS Department.
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